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billion, about $1.6 billion lower than its previou offer. Swiss pharmaceuticals giant Roche is nowoffering $86.50 a sharre for South San Francisco-based Genentech — $2.5 less than the offer it made last July and a committe of independent Genentech directors rejected in August. Genentech (NYSE: DNA) shares closed at $84.09 That may be too slim of a premiufor shareholders, especially when analysts generally put the ultimate price of a Roche-Genentech deal at $100 per “This has been a long drawn-out dance,” said Rod managing director of and the former head of business developmengt for Genentech. “There’s a real game of chicken beingplayef here.
” Roche already owns 55.8 percenyt of Genentech. One of the reasons for the six-month Ferguson said, is the size of the deal betweenj one ofthe world’s largesrt pharmaceutical companies and the world’s largest biotech. Also, Roche has trieds to be sensitive to thevaunted “Genentech culture.” “We have greay respect for our colleagues at Genentech and we will take the necessary steps to nurture Genentech’ innovative and unique science-driven culture,” Rochde CEO Severn Schwan said in a statement today, accordinyg to the Wall Street Journal .
But the hostil e offer could upsetthat balance, some people who follow the company have “In the end, cash wins (over culture),” Fergusonm said. Among the possible deal alternatives: Genentech management assembling minoritu shareholders for a bid that buys someof Roche’s sharez and Roche part-owner working with Genentech on a deal to buy Roche last year said it plans to shut down its Palo Alto where it employs 3,000, and shiftt an undisclosed number of jobs to South San Francisco and New It has said it would keep Genentech’es South San Francisco site for independent research.
Aftee Roche’s initial offer, Genentech transforme its stock option program into an employee retention Payouts from that plan could beginbby mid-year.
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